On the night a child turns 5 they get a PET. A PET is a genetically enhanced animal. The difference between PETs and pets is this: A PET can communicate to it's master, is a boon companion for life, and is sometimes a myth turned true, such as a Sphinx, or Phoenix, but not all the time. PETs are connected to our life force, when we die out PET dies, and vice versa. Everyone has one PET.
A pet is a normal animal, such as a cat or dog with no powers to speak of.